Costs & How to Fund a Claim

There are a range of options to help you afford to bring a negligence claim against a solicitor. We can help you to seek accountability and justice.

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Pursuing a claim for solicitor negligence can feel daunting — especially when it comes to funding. However, there are now more options than ever to help you seek justice without undue financial worry.

Engaging professional legal assistance not only increases your chances of a successful outcome but can also maximise the compensation that you recover. It may also help to resolve matters more swiftly than going it alone.

Here, we explain how to fund your own claim, Conditional Fee Agreements, Damages-Based Agreements, legal expenses insurance and much more to help you understand your options.

Get in touch to book a free, no-obligation consultation today by calling 0333 043 3230 or emailing hello@solicitorsnegligence.co.uk.

Funding your own claim

You may choose to fund your claim yourself. This means paying your solicitor’s fees and any associated costs directly, usually on an hourly rate or fixed fee basis. If your claim is successful, you may be able to recover some or all of these costs from the defendant.

While funding your own claim gives you full control over the process, it does mean that you bear the financial risk if your claim is unsuccessful. Your solicitor will provide a clear estimate of costs and keep you informed about any changes as your case progresses.

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Conditional Fee Agreements (No Win, No Fee)

A Conditional Fee Agreement (CFA) is commonly known as a ‘No Win, No Fee’ arrangement.

With a CFA, your solicitor’s fees are only payable if your claim succeeds. If you win, you pay for the solicitor’s time plus a regulated ‘success fee’ (essentially a bonus for winning your case). The success fee is capped by law to prevent excessive charges.

Importantly, if your claim is successful, some or all of your legal costs may be recoverable from the defendant.

Damages-Based Agreements

A Damages-Based Agreement (DBA) is another way to fund your claim. Here, your solicitor’s fee is calculated as a percentage of the compensation you receive, rather than being based on the time spent on your case. This means that your solicitor is paid a share of the damages awarded if your claim succeeds.

DBAs must comply with certain requirements by law. There are, for example, restrictions on what you can be asked to pay for during your matter and caps on what a solicitor can be paid under a DBA.

Legal expenses insurance

Many people have legal expenses insurance without realising it. It’s often included in home, contents or even car insurance policies, as well as some credit cards and memberships.

If you have this cover, it may pay for your legal costs. In most cases, you have the right to choose your own solicitor — even if your insurer suggests using one from its panel. If you encounter resistance to this, your chosen solicitor may be able to help you assert your rights.

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Third-party litigation funding

Third-party funders are private companies or individuals who agree to pay your legal costs in return for a share of any compensation that you win.

This option is becoming increasingly popular, especially for larger or more complex claims. The litigation funding market in the UK has grown rapidly, with funders now offering more flexible and scalable financing options, including portfolio funding for law firms and joint ventures.

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Recent developments & reforms

The UK’s litigation funding landscape is evolving. In 2025, the Civil Justice Council published recommendations to make funding more accessible and transparent, especially for consumer and group claims.

The proposed reforms aim to introduce light-touch regulation, clarify the rules around funding agreements and ensure that claimants are protected without stifling innovation.

While there’s no cap on funder fees, court oversight remains in place to prevent unfair returns. The right to choose your solicitor and ability to recover costs from the defendant remain central features of the system.

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Solicitor discretion & client eligibility

It’s important to note that the availability of funding options is subject to solicitor discretion. Not every solicitor will offer every type of funding agreement — and your eligibility for each option depends on the specifics of your case, as well as your circumstances.

For example, some claims may not meet the criteria for a ‘no win, no fee’ arrangement or a solicitor may decide that a damages-based agreement isn’t appropriate.

Your solicitor will assess your case and advise which funding options (if any) are available to you.

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What happens if my solicitor’s firm goes bust?

In recent years, the legal market has seen more firms facing insolvency due to economic pressures and changing business models. If a solicitor’s firm goes into liquidation, administration or bankruptcy, you might worry about getting paid.

Fortunately, professional indemnity insurance is designed to protect clients even in these circumstances.

If you have a valid claim for negligence and you notify the firm properly, the insurer should pay out — regardless of the firm’s financial position. This means that even if the firm closes its doors, the insurance remains available to cover successful claims.

If the firm is insolvent, you may need to deal directly with the insurer but your right to compensation remains.